Petrobras to Drill Sao Francisco Basin in 2008
Brazil's federal energy company Petrobras (NYSE: PBR) plans to start drilling the onshore Sao Francisco basin in 2008, according to Petrobras executive E&P manager Francisco Nepomuceno.
The company is planning to drill two exploration wells in the basin, he said during the Latin America Gas Summit 2006 seminar in Sao Paulo.
The basin has one of oldest geological formations in Brazil. It is located mostly in Minas Gerais state, which is crossed by one of Brazil's largest rivers, the Sao Francicso.
Petrobras, which carried out some exploration there in the 1940s, has never invested heavily in the region, where local populations have reported natural gas bubbling from the river's surface.
However, in 2005 Petrobras and British gas company BG Group (NYSE: BRG) were awarded interests in six Sao Francisco blocks in the seventh hydrocarbons licensing round. Petrobras is operator in all six blocks despite the 50:50 partnership.
Sao Francisco's proximity to consumer markets plus Brazil's rising demand for gas attracted the two companies and another four that were awarded 39 of the 43 blocks offered last year.
Investments in the blocks are estimated at some US$125mn, local press reported.
Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
- Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
- Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
Company: BG Group more info
- Shell Mulls LNG-Hub Network as Use by Ships and Trucks Expands (Jul 11)
- Tanzania Laws Would Allow Govt to Tear Up Mining, Energy Deals (Jun 29)
- Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 05)